Term vs Perm life insurance…
Recently, I was watching a TV program called “1000 ways of die” and it could sounds silly but after some accidents showed in the program I thought in that moment that life is too short and the future of my loved ones depends of my income, so I decided to delve into the world of insurance companies and ask around what kind of life insurance most suits me.
I found that the insurance companies offer 2 packages which are term and complement life insurance but what is the difference between them? Well, there are a lot of post and articles that mention the main differences and which one is the best, but I will give you my opinion and facts about which of these insurance of policies, you and I should take.
First fact is that complement life insurance is way more expensive but has more benefits than term life insurance. Some benefits are:
- Maintain their standard of living.
- Pay off any household debt.
- Secure your children`s education.
- Supplement retirement savings.
- It doesn`t expired.
On the other hand term life insurance is time-limited, it means it`s only valid for 5 to 30 years but the time lapse depends of each company.
Another difference of term life insurance is that the price is very low but it does not build cash value like a permanent life policy does.
Here we have some of term life benefits:
- An affordable way to get financial protection
- A means to provide funds for specific financial responsibilities like a mortgage or college expenses.
- It may be portable so you can take it with you if you leave your company.
Finally, you must see what is the most suitable life insurance package for you and you must consider what type of job do you have, is it dangerous?... does it provoke occupational diseases? And remember that permanent life insurance can be a valuable tool for a relative few, but unless you have a high income above $250,000 annually your life insurance needs are likely best met with term life insurance.